The dramatic fall of Mugabe may not imply a sudden rise for Zimbabwe even as the streets of Harare were filled with celebrations as Emmerson Mnangagwa took power. The ruin that Mugabe made for 37 years may not be fixed overnight, and this calls for the new leadership to develop strategies and be vigilant. The nation has many resources that can be utilized to give it a new global image. Think of the labor force and creative population in Zimbabwe, the natural resources and minerals are just but a few items on the list. It is sad that International Monetary Fund (IMF) has carried out three Staff Monitored Programmes (SMP) and reported that the country needs to adjust its expenditure and reform state enterprises and parastatals.
Currently, Zimbabwe has 107 state-owned enterprises and parastatals which have negligible contribution to the Gross Domestic Product (GDP) since are the hub of patronage, corruption, and cronyism. In 2016, it was reported that 38 state-owned enterprises and parastatals recorded an overall loss of $270 million. Additionally, in 1998 the country was declared bankrupt. To make matters worse, over 50% of public institutions rely on government bailouts and are technically insolvent.
Efforts that were made by Patrick Chinamasa who served as a finance minister during Mugabe’s era bore no fruits as the president constantly rejected his requests. He had recommended that the government reduce public service and government subsidies.
Mnangagwa is expected to achieve much, but the country is in its worst economic times.However, there should be hope because Zimbabwe can be inspired by the directions Rwanda took. The dark history recorded where over 800, 000 lives were lost in Rwanda never made president Kagame to revive the economy of Rwanda. More than 80% of Rwanda’s population is actively involved in small-scale farming, and the country is recognized as one of the powerhouses in Africa. Moreover, the recent World Bank report on the ease of carrying out business in Rwanda by IMF ranked the country as 56 of 190 countries. In 2016, the Foreign Direct Investment (FDI) in Rwanda was $410 million while Zimbabwe had $319 million.
Zimbabwe can rise above Rwanda considering that the 37 years of Mugabe didn’t lead the country to genocide. The eyes of investors are on Mnangagwa as he is expected to lead a culture shift in the country.
